BiggerPockets

Buying foreclosure properties at the courthouse steps

Sunday, March 08

Last week I went to the monthly foreclosure sale at the courthouse steps. It was my first time attending a foreclosure sale and these were my observations.

When I first arrived, the sheriff was standing higher up on a bench and there were about 20-30 people around him. An assistant passed out a handout of the properties that were up for auction. You are to arrive with cashier's checks or money orders on hand to purchase the properties on the spot and be given the title. There were 14-15 properties on the list with 2-3 of them being struck out and the rest available. As the bidding began there was a common theme that began to arise. There were many spectators and those wishing to bid and then there were those that actually had the cash to buy. It was easy to note whom were the investors in the crowd. Most of them stood together as they all knew each other and had pre-printed lists that they had brought with them of the properties with comps, maps, and details. They didn't bid on any of the properties in this case all acred lots that were up for grabs at $1500 each but instead waited to bid on actual houses. A certain man did pick up about 5- 7 lots all within the same subdivision. This man was an interesting figure. He was a lean, hispanic man whom seemed to be in his late 30's-early 40's. He wore a soiled mechanic's jumper suit and had various tattoos and looked a bit scruffy. He didn't seem the kind of person whom would have the cash to buy these properties all at once yet he did. The investors in the crowd mentioned that he was probably buying to build small houses on the land to sell or rent out. I didn't ask. There was one property or piece of land that did gain interest from the public and the bidding started a bit higher at $2500. It ended up going for about $5000 for that piece of land to a couple in the crowd. (read more)

Comments

1. 

   Joshua Dorkin Reply
   over 2 years ago

   Thanks for sharing your experience at a foreclosure auction on the courthouse steps. I think others will certainly find it interesting.

2. 

   Marc Faulkner Reply
   over 2 years ago

   In the note world values and credit seem to be the biggest problem. Property values are going down right now and we all have to live with that!

3. 

   Marc Faulkner Reply
   over 2 years ago

   You should have done everything you could have to have made friends w/that guy! Did you even try to make friends?

4. 

   Flower D. Reply
   over 2 years ago

   We are and are working on some projects together.

5. shawn Reply
   over 2 years ago

   In my opinion several things to judge if you want to buy a foreclosure at the courthouse. Some of the steps listed below to use as an investment property:

   1. Be educated.
   2. Calculate your costs involved with purchasing the property.
   3. Be ready to play.
   4. Have your exit strategies in place when buying your property.

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